International Arbitration 2025

UK Trends and Developments Contributed by: Tom Sprange KC, Shouvik Bhattacharya and Sadyant Sasiprabhu, King & Spalding International LLP

Emergency Arbitrators The 2025 Act formally recognises the role of emergen - cy arbitrators – an established feature of modern arbi - tral practice. While the 1996 Act predated the emer - gence of emergency arbitrator mechanisms, the new legislation brings English arbitration law into alignment with institutional rules that permit such appointments in circumstances where the tribunal has not yet been constituted. Under the updated framework, where the applicable arbitral rules provide for the appointment of an emer - gency arbitrator, and such an appointment has been made, the emergency arbitrator is expressly empow - ered to issue peremptory orders. These orders may be enforced by the courts where a party fails to comply without sufficient cause. This reform enhances the effectiveness of interim relief in urgent cases and ensures that emergency arbitra - tors have access to the same enforcement mecha - nisms as fully constituted tribunals. It reflects the commitment to maintaining a responsive and modern arbitration regime capable of meeting the demands of complex, time-sensitive disputes. Duty of Disclosure The 2025 Act introduces a new Section 23A, which codifies the duty of disclosure owed by both current and prospective arbitrators. The provision requires disclosure of any circumstances that might reason - ably give rise to justifiable doubts as to the arbitrator’s impartiality – mirroring the standard articulated by the UK Supreme Court in Halliburton v Chubb . Important - ly, the duty extends not only to matters of which the arbitrator is actually aware but also to those of which they ought reasonably to be aware. The wording of the new section reinforces the continu - ing nature of the disclosure obligation and reflects a broader consensus within the arbitration community: while absolute independence may be unattainable, transparency is essential to maintaining confidence in the process. The reform is also consistent with inter - national best practice, aligning the English arbitration framework with the UNCITRAL Model Law, various institutional rules, and the legislation of other leading arbitral jurisdictions.

By codifying and clarifying the disclosure standard, the 2025 Act aims to ensure that parties are equipped with the information necessary to make informed decisions about the composition of the tribunal with - out imposing an unduly onerous burden on arbitrators. Arbitrator Immunity The 2025 Act introduces targeted enhancements to the statutory protections afforded to arbitrators, rein - forcing the UK’s reputation as a safe and attractive seat for international arbitration. These reforms clarify and extend the scope of immunity in two key respects: resignation and removal. First, it confirms that arbitrators are not liable for resigning from their appointment unless the resigna - tion is found to be unreasonable in all circumstances. This codifies a balanced approach, which protects arbitrators from undue exposure while preserving recourse in cases of unjustified withdrawal. Second, where an arbitrator is removed following a successful application by a party, the court may not order the arbitrator to bear the costs of the removal unless their conduct is shown to have been in bad faith. This reverses the previous common law position and provides greater certainty for arbitrators who act in good faith throughout the process. Together, these provisions broaden and strengthen the existing immunity framework under the 1996 Act, which already shielded arbitrators from liability for acts or omissions in the discharge of their functions, save for those involving bad faith. The 2025 Act builds on that foundation, ensuring that arbitrators are not exposed to personal financial consequences merely for stepping down or being removed despite acting in good faith. These changes will hopefully encour - age experienced practitioners to accept appointments without undue concern over personal liability. Conclusion The 2025 Act marks a measured yet meaningful evolu - tion of the legislative framework governing arbitration in England and Wales. By codifying established prac - tices, clarifying procedural uncertainties and introduc - ing targeted reforms – many of which were previewed in the authors’ 2023 chapter – the coming in to force

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